Zoho says AI-driven cost pressures limit pay hikes this year
In short
Zoho says it cannot give its usual salary hikes to employees this year.
The company blamed higher server prices, geopolitical uncertainty, and AI-related cost pressure. It also said it wants to avoid mass layoffs and has not been hiring for the past 18 months.
What the reporting says
Zoho said it cannot offer the usual pay hikes to employees this year as AI-related cost pressures affect the business, according to the report. Sridhar Vembu also cited higher server prices and geopolitical uncertainty, while saying the company will try to avoid mass layoffs and has not hired for the past 18 months. The size of the pay change was not stated.
Why it matters
Zoho’s reported pay decision reflects rising operating pressure from AI, higher server prices, and geopolitical uncertainty. Sridhar Vembu said the company will try to avoid mass layoffs and has not hired for 18 months, suggesting it is tightening costs rather than expanding headcount. The exact pay cut or freeze terms were not stated, so the financial impact is unclear.